08:52 AM EDT, 06/03/2024 (MT Newswires) -- GameStop ( GME ) shares surged before the opening bell Monday after a post on Reddit (RDDT) appeared to show that the person behind the 2021 meme stock craze has a sizeable holding in the video game retailer.

Keith Gill, who is known as "DeepF------Value" on Reddit, purchased 5 million shares of GameStop ( GME ) at $21.27 apiece for a total value of $115.7 million, according to a screenshot shared over the weekend on the social media platform's r/SuperStonk forum. The post also showed 120,000 call options worth $65.7 million due to expire on June 21.

Gill, who also goes by the "Roaring Kitty" name on X and YouTube, returned to social media in the week of May 13 with his first post in about three years. His reappearance triggered a fresh demand frenzy for meme stocks, which are often companies with weak fundamentals but have a cult-like social media following, similar to the rally that occurred in 2021.

GameStop's ( GME ) stock closed at $23.14 on Friday and rocketed 77% in recent premarket activity. Shares of the company have jumped roughly 39% so far this year, buoyed mainly by Gill's return. AMC Entertainment ( AMC ) , another meme stock, gained 23% pre-bell Monday.

Gill's posts on Reddit's Wallstreetbets discussion group in 2021 helped drive interest in GameStop ( GME ). A key position of his at the time was that the retailer was undervalued and that investors could rally behind the stock and squeeze Wall Street short sellers. In the aftermath of the meme rally, Gill was hit with class-action lawsuits, according to media reports.

Last month, GameStop ( GME ) disclosed preliminary fiscal first-quarter results that pointed to a sharp year-over-year decline in sales. The company, which is scheduled to release its full quarterly results next week, anticipates revenue to come in between $872 million and $892 million for the three months through May 4. It recorded sales of $1.24 billion in the same quarter last year.

The company also raised $933.4 million in gross proceeds in May through an offering of 45 million shares of its class A stock. At the time it said that it plans to use the proceeds for general corporate purposes, including potential acquisitions and investments.

Price: 39.90, Change: +16.76, Percent Change: +72.43